Top earners, high-growth sectors under tax scanner

E-commerce activities that could give revenue to the tax department include advertisement on portals, payment for job work such as building website, translation of pages, data entry of text, research.

To augment collections from tax deducted at source, the department will monitor payments to sub-contractors by infrastructure companies and catering contracts in star hotels, payments to guest lecturers by universities and educational institutions.

Top earners, high-growth sectors under tax scanner

“As you bring more and more payments in the realm of TDS, tax collections will increase,” said Divya Baweja, senior director, Deloitte.

The tax department will also keep an eye on payments to event managers and medical transcription companies, compensation structure of top company executives with regard to their allowances, perks and reimbursements, and treatment of employees as consultants.

“In case of professionals such as doctors, salary payments are misclassified as professional payments and tax is deducted by applying lower rates.

“This aspect needs to be examined,” it said.

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Image: The tax department will also keep an eye on payments to event managers and medical transcription companies.Photographs: Reuters

Top earners, high-growth sectors under tax scanner

Entities covered by minimum alternate tax provisions, particularly banks, state power generation and transmission utilities, will also come under the I-T scanner.

“Tax collected at source at one per cent from buyer of scrap and minerals, being coal, lignite or iron, and at two per cent of the amount payable for award of lease for parking lots, toll plaza, mining and quarrying are other areas to be actively pursued for collection of revenue,” the CBDT added.

TDS statements of top 100 deductors as well as from state governments would be monitored closely.

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Image: TDS statements of top 100 deductors as well as from state governments would be monitored closely.

Top earners, high-growth sectors under tax scanner

In Guwahati, all high personal expenses such as payment in shopping malls, educational institutions, coaching centres and home property would be tracked, while in Lucknow the taxman would monitor purchase of luxury cars and SUVs.

In Kolkata, it will monitor expenses incurred by film or media content producers, and, in Chennai, it will study projects on sand mining and timber import.

The projects in Kochi would comprise houseboats and capital gain on land sale, while in Bengaluru it would look at interest from investment in various bank accounts.

The pilot projects in Pune and Bhopal involve capital gain from sale of transfer of development rights and immovable property, respectively.